Legal Basis for AAUI Establishment

Law No. 40 of 2014 concerning Insurance
CHAPTER XIV – concerning Insurance Business Association

Article 68

  1. Every insurance company must become a member of one of the insurance business associations that is suitable for its type of business.
  2. The insurance business association as referred to in paragraph (1) must obtain written approval from Financial Fervices Authority (OJK).

Article 69

  1. The Financial Services Authority can assign or delegate certain powers to insurance associations in the framework of regulating and/or supervising insurance companies.
  2. Further provisions regarding the assignment or delegation of authority as referred to in paragraph (1) are regulated in the Financial Services Authority regulations.